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Assume that in 1974, interest rates were 8.509% and the rate of inflation was 12.624%. What was the real interest rate in 1974? How would

Assume that in 1974, interest rates were 8.509% and the rate of inflation was 12.624%. What was the real interest rate in 1974? How would the purchasing power of your savings have changed over the year? The real rate of interest in 1974 was _________- which means that the purchasing power of your savings would have (decreased/increased by

_______ %.

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